Duolingo Filed IPO with 97% Revenue Growth Year Over Year

Duolingo, a language-learning application, filed its initial public offering prospectus to the Securities and Exchanges Commission last Monday.

It is intended to be listed on the Nasdaq with a ticker symbol of DUOL.

Last year, the Pittsburgh-based company’s revenue soared 129% to $161.7 million which brought in $55.4 million in revenue last March 31.

This is a spike of 97% from last year while its net losses expanded more than six-fold to $13.5 million.

Among Duolingo’s largest venture capital investors are Kleiner Perkins, Union Square Ventures, and Alphabet’s independent growth fund CapitalG.

Meanwhile, Goldman Sachs, Allen & Company, Evercore ISI, and Barclays will be leading its IPO.

The firm is highly dependent on its distribution via mobile app stores, however, it can also be accessed through its website, Duolingo.com.

It stated that the company derived 51% of its revenue from Apple’s App Store and 19% from Google Play Store.

Additionally, Duolingo was the top-grossing application in the Education category from each app store.

It is also claiming a Google search popularity with over nine times as many searches for its names for the phrase “learn Spanish”.

Duolingo is offering 95 courses across 38 distinct dialects. 

This includes the world’s most spoken languages such a Spanish, French, and Japanese with 26.2 million, 16.4 million, and 10.3 million English speaking learners, respectively.

It also offers endangered languages like Hawaiian, Scottish Gaelic, and Navajo with approximately 559 000, 425 000, and 272 000 English speaking learners, respectively.

In addition to its core platform, it offers Duolingo English Test which is an affordable and convenient language certification.

Currently, this is being accepted by more than 2 000 universities and institutions all over the world.

Language-Learning App Potential

Moreover, an analyst stated that the language-learning platform has the potential to succeed.

However, it must continue in building and marketing its powerful educational technology brand by making it the go-to name in second language learning.

He added that if Duolingo executes this, its stock will stand poised in delivering long-term gains.

On a domestic scale, transferring demographics must prove a strong catalyst for the DUOL stocks for the succeeding years.

In a survey, the United States was the second-largest Spanish-speaking country in 2015.

In 2050, the region will take the lead as experts anticipate a demographic of about 133 million Spanish speakers.

Meanwhile, on a global scale, the implications are even bigger since English is the most spoken language followed by Chinese.

In general, Americans and English-only speakers need to catch up in the multilingual life and business environment.

Duolingo’s spike in revenue last 2020 shows that a lot of workers and people, in general, are willing to use their time in learning a new language using the platform.